What are penalties for construction work without permit in Vietnam?

Currently, some large-scale projects require a construction permit to be able to execute. So, what are penalties for construction work without permit in Vietnam?

What are penalties for construction work without permit in Vietnam? (Source: internet)

1. Construction projects that needs permits in Vietnam

According to Article 103 of the Law on Construction (2014), work must apply for grant, adjust, extend, re-grant and withdraw construction permits as follows:

- Provincial-level People's Committees shall grant construction permits to works that are required to be granted construction permits in the province, except for works specified in Clause 3, Article 103 of the Law on Construction 2014. Provincial People's Committees decentralize, authorize the Department of Construction, the Management Board of industrial parks, export processing zones, high-tech zones, economic zones, and district-level People's Committees to issue construction permits under the functions and scope of management of this agency.

- District-level People's Committees shall issue construction permits for grade III, grade IV works and separate houses in the area under their management.

- District-level People's Committees shall issue construction permits for grade III, grade IV works, and separate houses in the area under their management.

- Agencies competent to issue construction permits are agencies competent to adjust, extend, re-issue, and revoke construction permits granted by them.

- In case an agency competent to grant construction permits fails to withdraw a construction permit it has granted ultra vires, the provincial-level People’s Committee shall directly issue a decision to withdraw such construction permit.

2. Penalties for construction work without permits in Vietnam

According to Clause 7, Article 16 of Decree 16/2022/ND-CP, the penalties for organizing construction without construction permit are as follows:

- A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed in case of detached houses;

- A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed on construction of detached houses in sanctuaries, historical - cultural heritages, or other structures;

- A fine ranging from VND 120.000.000 to VND 140.000.000 shall be imposed on construction of structures that require feasibility study of construction investment or economic - technical report on construction investment.

Application of remedial measures: forcible demolition of infringing works or parts of construction works with violations.

For acts specified in Clause 7 Article 16 of Decree 16/2022/ND-CP that are under construction, the order and procedures specified in Article 81 of Decree 16/2022/ND-CP must be followed.

Note: For individuals with the same violations, the fine is equal to 1/2 compared to the organization.

Thus, organizations that have committed acts of constructing work without a construction permit in the items requiring a permit may be fined up to 140 million VND.

Chi Nhan

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